George Sutherland

“ Appellant further contends that, assuming this method to be free from constitutional objection, the valuation put upon the property is so low as to result in confiscation. To meet this objection it is only necessary that there shall be brought into the rate base the value of all property of appellant which is in fact used and useful for supplying the electric current to the city. Manifestly, the local plants in other towns and cities bear no such relation to the Martinsville plant. ”

“ In addition to what already has been said, it should be noted that appellant not only furnishes electric current to the fifty separate and unrelated towns and cities, in none of which the plant is used or useful for the rendition of service to any other town or city, but appellant also carries over its lines and delivers to others of the affiliated companies, as intercorporate transactions, varying portions of the entire current borne by its lines for subsequent distribution by the affiliated companies to their customers, including many towns and cities within their respective territories. ”

“ Complaint is made that in determining the value of the Martinsville property no allowance was made for cost of financing. As the court below, however, pointed out, there was no evidence that such cost was incurred, or that it necessarily would be incurred in the event of reconstruction. This is also in accordance with the findings of the master. We see no reason to interfere. See Vincennes Water Supply Co. v. Public Service Commission (C.C.A.) 34 F. (2d) 5, 9. ”

“ Appellant owns and operates an interconnected system in a territory comprising thirteen counties of the state, and sells and distributes electric current to approximately fifty cities and towns therein, including the inhabitants of the city of Martinsville, and also to a large number of industrial plants and customers outside the limits of such cities and towns. Appellant's system consists in the main of general transmission and transformation properties, and local distributing plants. ”

“ Nearly all the electric current distributed by appellant is 'purchased' by it from one of the other affiliated corporations which has had in operation since 1924 an extensive and modern generating plant known as the 'Dresser Plant.' The combined needs of the affiliated corporations have so increased that for the year ending May 31, 1930, the total current used greatly exceeded that supplied by the Dresser Plant ”

“ The deductions from the evidence and the calculations are of necessity more or less approximate (Utah Power & L. Co. v. Pfost, 286 U.S. 165, 190, 52 S.Ct. 548, 76 L.Ed. 1038) , but we find nothing in the record which casts a substantial doubt upon their essential fairness. ”